ITALY: Tax drop drives Campari growth
The Italian drinks group Campari announced yesterday that its net profits grew 20% in 2001 to €63.4m (US$55.47m). The company said the growth was driven by a rise in sales and a significant drop in taxes.
Campari, the maker of the eponymous aperitif, along with Cinzano and Skyy Vodka, saw its sales rise 13.9% to €494.3m in 2001. However, pre-tax profits fell 3.6% to €94m, which suffered from foreign exchange losses.
"Net profits...benefited from a reduction in the tax rate compared with 2000, when substantial provisions for tax litigation were accounted for," Campari said in a statement, adding tax payments had dropped 31.5% .
In a note analysts West LB Panmure said: "This appears to be a solid set of results and the contribution of the Brazilian business (15.5% of sales) will have eased some concerns. We would contend that the main catalyst for a potential re-rating is likely to be acquisitions, as well as further innovative deals such as that struck with Miller in the production of SKYY Blue.
"Since the end of 2001 it is worth noting that Campari has become the controlling shareholder in SKyy spirits, and acquired 100% of Zedda Piras, a leading Sardinian spirits company, which controls 67.6% of Sella & Mosca, a major player in the Italian premium wine market.
"Campari has a very profitable business model due largely to the strength o its position in the Italian market and a higher than average rate of investment in advertising and promotion. The dependence on the Italian market could be perceived to be a risk, however recent/further acquisitions
should help to diversify this risk," it concluded.
Campari said it would propose a dividend of 0.88 euros per share.
Campari said it paid non-recurring costs of 5.6 million euros in 2001, related to its listing on Milan's bourse last July and a restructuring plan.
The rum market may be dominated by white rum - and by one brand in particular - but Larry Watson, managing director, distribution division, at Jamaican rum producer, J Wray & Nephew, believes there is...
Flavoured vodkas have been a major success story in the US where they have prospered on the back of strong sector growth and premiumisation. With European markets also showing consistent growth and so...
Campari has had its rating cut....
Davide Campari-Milano S.p.A. has seen a 2.6% rise in sales drive growth across all profitability indicators in the first half of the year....
US investment house Citigroup Smith Barney has cut its rating on Italian drinks group Davide Campari-Milano SpA from "buy" to "hold"....
Goldman Sachs has initiated coverage of Davide Campari-Milano shares....
Luca Cordero di Montezemolo, an independent director on the Davide Campari board, has handed in his resignation to the Italian company....
The Campari Group has seen a modest growth in its first quarter sales, although the performance led to a more impressive increase in other profitability indicators....
- Focus - Edrington's FY Performance by Brand
- Pernod relies on Indian whiskey to crack Africa
- Where Beer is Brewed Can Leave a Bad Taste
- Analysis - Storm clouds lift over Diageo Towers
- Hail Marie Brizard: But, For How Long?
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Diageo sells "non-core" Gleneagles
- Former Bacardi exec takes De Kuyper CEO role
- Diageo lining up Gleneagles sale - report
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- The IWSR Company Profile 2014 – Remy Cointreau
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global Tequila insights - market forecasts, product innovation and consumer trends research